IN RE: HIMACHAL ADVANCED CIRCUITS Vs. STATE

JUDGEMENT

(1.) THE Board for Industrial and Financial Reconstruction (BIFR), forwarded its opinion formed under Section 20(1) of the Sick Industrial Companies (Special Provisions Act), 1985 (hereinafter referred to as "the SICA"), as required under Section 20(2) thereof to this Court.

(2.) M /s. Himachal Advanced Circuits Limited (hereinafter referred to as "the company"), having become a sick industrial company within the meaning of the SICA, approached the BIFR. Its reference was registered as Case No. 16 of 1998. On September 14, 1999, on being satisfied under Section 20(1) of this Act that the company needs to be prima facie wound up, show cause notice was issued calling for objections and suggestions. It was also mentioned in this order that the promoters were still at liberty to submit their revival plan to the operating agency and the BIFR within the time specified in the show cause notice. A direction was issued to the operating agency that in case such a proposal is given by the promoters, it will examine the same and submit its recommendations to the Bench. The operating agency had got the techno economic viability study done from Himachal Consultancy Organisation keeping in view the product of the company. Finally, the order under Section 20(1) of the SICA was confirmed by the BIFR on January 13, 2000, when it was held that it would be just and equitable, as well as in public interest if the company, which is a sick company is wound up. Therefore, recommendation was forwarded to this Court under Section 20(2) of the SICA.

(3.) THE company had meanwhile preferred appeal against the order dated January 13, 2000, passed by the BIFR before the appellate authority under the SICA. It was dismissed on September 11, 2001. This order had attained finality intra parties.